Ex-Morgan Stanley IT Expert Files Whistleblower Suit Against Autonomy Capital

“The impact of these holes in Autonomy’s cybersecurity systems was potentially seismic and could leave the Company’s clients vulnerable to having their data hacked by third parties, as well as to mass deletion in the event of an unexpected technology event,” the suit alleged.

Moniodes “knew that he could not allow these troubling cybersecurity deficiencies to go unaddressed,” and so he “volunteered to the SEC that Autonomy did not have sufficient DLP software protections in place and that the Company was, therefore, in violation of applicable SEC rules,” according to the complaint. He also “led the internal charge to address these issues,” the suit said.

Moniodes raised the cybersecurity issues he had identified with Autonomy’s senior management, but the company “did not heed” his “warnings and failed to take the required steps to address its DLP deficiencies at that time,” the suit alleged.

“Subsequently, in mid-2019, during a telephone conference in the midst of an SEC audit into Autonomy’s cybersecurity capabilities, Mr. Moniodes proactively admitted to the SEC that the Company did not have sufficient MDM DLP in place,” according to the suit.

“Unfortunately, rather than thanking Mr. Moniodes for protecting the Company’s clients’ data and information, Autonomy retaliated against him for daring to inform the SEC about their cybersecurity issues, ultimately terminating his employment as a result,” according to the complaint.

Moniodes is looking to recover damages arising from Autonomy’s “unlawful retaliation against him for protected whistleblower activities in violation” of federal laws including Section 806 of the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, he alleged in the suit.

The plaintiff also planned to file a complaint with the Occupational Safety and Health Administration of the Labor Department, alleging Sarbanes-Oxley violations, according to the suit.